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					17                                                 DEPARTMENT OF FINANCIAL INSTITUTIONS                                                        DFI−Sec 4.01

                   Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.




                                                                   Chapter DFI−Sec 4
                                  REGISTRATION OF BROKER−DEALERS AND AGENTS
DFI−Sec 4.01      Registration procedure.                                             DFI−Sec 4.06   Prohibited conduct.
DFI−Sec 4.02      Net capital requirements and aggregate indebtedness limitations.    DFI−Sec 4.07   Registration period.
DFI−Sec 4.03      Broker−dealers’ records.                                            DFI−Sec 4.08   Withdrawal of registrations.
DFI−Sec 4.04      Reporting requirements.                                             DFI−Sec 4.09   Denial, suspension, revocation and censure.
DFI−Sec 4.05      Practice rules.                                                     DFI−Sec 4.10   Registration exemptions.


  Note: Chapter SEC 4 as it existed on December 31, 1977 was repealed and a new       DATE” of the application reflected on the records of the central
chapter SEC 4 was created effective January 1, 1978. Chapter SEC 4 was renumbered
chapter DFI−Sec 4 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s.
                                                                                      registration depository, either the Series 63 Uniform Securities
13.93 (2m) (b) 6. and 7., Stats., Register, December, 1996, No. 492.                  Agent State Law Examination or the Series 66 Uniform Com-
                                                                                      bined State Law Examination, and take and pass within the two
    DFI−Sec 4.01 Registration procedure.                       (1) (a)                year period immediately preceding the “FILING DATE” of the
Applications for initial and renewal registrations of broker−deal-                    application reflected on the records of the central registration
ers and agents, as well as amendments, reports, notices, related fil-                 depository, or receive a waiver from passing, the general securi-
ings and fees, shall be filed with:                                                   ties business examinations in par. (a), unless the applicant’s pro-
     1. The division on forms prescribed by the division in s. DFI−                   posed securities activities will be restricted, in which case the
Sec 9.01 (1); or                                                                      applicant is required to take and pass, or receive a waiver from
     2. The central registration depository of the financial industry                 passing, each examination in pars. (b) to (h) that relates to the
regulatory authority as developed under contract with the North                       applicant’s proposed securities activities:
American securities administrators association, on forms estab-                           (a) The Series 7 General Securities Representative Examina-
lished for the central registration depository.                                       tion.
    (b) An application for registration as an agent of a broker−                          (b) The Series 6 Investment Company Products/Variable Con-
dealer is deemed filed under s. 551.406 (1), Stats., on the “FILING                   tracts Representative Examination.
DATE” reflected on the records of the central registration deposi-                        (c) The Series 22 Direct Participation Programs Representa-
tory.                                                                                 tive Examination.
    (2) (a) Except as provided in par. (b), an “application” for pur-                     (d) The Series 52 Municipal Securities Representative
poses of s. 551.406 (1), Stats., means all information required by                    Examination.
the form prescribed under sub. (1) together with any additional                           (e) The Series 62 Corporate Securities Limited Representative
information required by the division.                                                 Examination.
    (b) An application for initial registration or for renewal of a                       (f) The Series 42 Registered Options Representative Examina-
registration as a broker−dealer registered with the financial indus-                  tion.
try regulatory authority includes the payment of the Wisconsin                            (g) The Series 72 Government Securities Representative
broker−dealer registration fee and, in the case of an initial applica-                Examination.
tion, the examination fee prescribed by s. DFI−Sec 7.01 (3) (a), to                       (h) The Series 82 Private Placement Representative Examina-
the central registration depository of the financial industry regula-                 tion.
tory authority. An application for initial registration as a broker−
dealer under this paragraph shall be deemed filed under s. 551.406                        (4) The examination requirement in sub. (3) is waived for any
(1), Stats., on the date the application is transferred from “NO                      applicant who meets the criteria set forth in any one of the para-
STATUS” to “PENDING” on the records of the central registra-                          graphs in this subsection:
tion depository. An application for renewal of a registration as a                        (a) The applicant has passed the examinations required to be
broker−dealer under this paragraph shall be deemed filed under s.                     passed by the applicant under sub. (3) within 2 years prior to the
551.406 (1), Stats., when the fee on deposit with the central reg-                    date the application for registration is filed in this state.
istration depository has been allocated to the division.                                  (b) The applicant has been registered within 2 years prior to the
    (c) An “application” for initial registration or for renewal of a                 date the application is filed in this state, as an agent or as a broker−
registration as a securities agent for a broker−dealer registered                     dealer under the securities law of another state and the following
with the financial industry regulatory authority includes the pay-                    applicable conditions are met:
ment of Wisconsin agent registration fees to the central registra-                         1. The other state where the applicant has been registered has
tion depository. An application for initial registration as an agent                  required the uniform securities agent state law examination prior
under this paragraph shall be deemed “filed” under s. 551.406 (1),                    to that 2 year period.
Stats., on the date when the application is designated ready for                           2. In the case of examinations required by sub. (3) (a) to (e),
approval on the records of the central registration depository. An                    the applicant has been registered with the financial industry regu-
application for renewal of a registration as an agent under this                      latory authority to engage in the type of business for which the
paragraph shall be deemed “filed” under s. 551.406 (1), Stats.,                       applicant is applying for registration within 2 years prior to the
when the fee on deposit with the central registration depository                      date of filing of the application for registration.
has been allocated to the division.                                                       (c) The applicant has submitted an undertaking satisfactory to
    (d) An electronic signature affixed to any filing made in com-                    the division setting forth how the applicant’s activities will be lim-
pliance with the requirements of the central registration deposi-                     ited in this state and, in the case of an agent seeking a limited regis-
tory shall constitute irrefutable evidence of legal signature by any                  tration, how the agent will be adequately supervised.
individual whose name is typed on the filing.                                             (d) The applicant has been registered under ch. 551, Stats.,
    (3) Unless waived under sub. (4), each applicant for an initial                   within 2 years prior to the date the application is filed as an agent
registration as a broker−dealer or agent is required to take and pass                 or broker−dealer to engage in the type of business for which the
within the two year period immediately preceding the “FILING                          applicant is applying for registration.


                                                                                                                               Register, September, 2010, No. 657
 DFI−Sec 4.01                                    WISCONSIN ADMINISTRATIVE CODE                                                                                      18

                  Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

    (e) The applicant is currently registered and in good standing           (d) Written disclosure shall be provided regarding the agent’s
with The Securities and Futures Authority of Great Britain and has        simultaneous representation of more than one broker−dealer or
passed the Series 17 Modified General Securities Representative           issuer, including the information in par. (a), to each securities cus-
Qualification Examination for United Kingdom Representatives,             tomer of the agent not later than the date of receipt of the confirma-
and either the Series 63 Uniform Securities Agent State Law               tion for the first securities transaction for the account of the cus-
Examination or the Series 66 Uniform Combined State Law                   tomer by the agent after dual registration is approved by the
Examination, except that the applicant’s activities may not               division.
include the offer and sale of municipal Securities unless the appli-          History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (1), Register,
                                                                          December, 1979, No. 288, eff. 1−1−80; am. (1) and (4) (b), r. (4) (c), renum. (4) (d)
cant passes the examination listed in sub. (3) (d).                       and (e) to be (4) (c) and (d), r. and recr. (5), renum. (7) to be SEC 4.05 (8), Register,
    (f) The applicant is currently registered and in good standing        December, 1980, No. 300, eff. 1−1−81; am. (1) and (3), Register, December, 1981,
as an agent with any Canadian stock exchange or with a securities         No. 312, eff. 1−1−82; am. (3), (5) and (6), r. (4) (a), renum. (4) (b) to (d) to be (4) (a)
                                                                          to (c), Register, December, 1982, No. 324, eff. 1−1−83; am. (1) (a), renum. (2) to be
regulator of any Canadian province or territory, or with the Invest-      (2) (a) and am., cr. (2) (b) and (7), r. and recr. (3), (4) and (5), Register, December,
ment Dealers Association of Canada and has passed either the              1983, No. 336, eff. 1−1−84; cr. (8), Register, December, 1985, No. 360, eff. 1−1−86;
                                                                          am. (2) (b), Register, December, 1986, No. 372, eff. 1−1−87; am. (3) (intro.) and cr.
Series 37 or Series 38 Canada modules of the Series 7 general             (3) (e) and (9), Register, December, 1988, No. 396, eff. 1−1−89, except (9), eff.
securities representative qualification examination, and either the       2−1−89; renum. (2) (b) to (2) (c), cr. (2) (b), am. (4) (b), Register, December, 1990,
Series 63 Uniform Securities Agent State Law Examination or the           No. 420, eff. 1−1−91; am. (4) (b) and (5) (intro.), cr. (10), Register, December, 1992,
                                                                          No. 444, eff. 1−1−93; r. and recr. (4) (b), am. (5) (intro.), Register, December, No. 468,
Series 66 Uniform Combined State Law Examination, except that             eff. 1−1−95; am. (3) (intro.) and (5) (intro.), renum. (4) (e) to be (4) (f), cr. (4) (e), Reg-
the applicant’s activities may not include the offer and sale of          ister, December, 1995, No. 480, eff. 1−1−96; r. and recr. (3) (a), am. (3) (b) to (e) and
municipal securities unless the applicant passes the examination          (5) (a) to (d), cr. (3) (f) and (g), (4) (f) and (g) and (5) (e), renum. (4) (f) to be (4) (h),
                                                                          Register, December, 1999, No. 528, eff. 1−1−00; CR 01−082: am. (3) (intro.), cr. (3)
listed in sub. (3) (d).                                                   (h), r. (5), renum. (6) to (10) to be (5) to (9), Register December 2001 No. 552 eff.
    (h) The applicant has received an order of the division, issued       1−1−02; CR 08−077: am. (title), (2), (3) (intro.), (a), (4) (a) to (d), (5), (7), (8) (intro.)
                                                                          and (d), renum. (1) to be (1) (a) and am. (1) (a) (intro.) and 2., cr. (1) (b) and (2) (d),
under conditions as the division may prescribe, waiving the               r. and recr. (6), r. (9) Register December 2008 No. 636, eff. 1−1−09; CR 09−056: am.
requirement to take and pass one or more of the examinations in           (3) (intro.) and (4) (e) to (g) Register December 2009 No. 648, eff. 1−1−10; CR
sub. (3).                                                                 10−062: r. (4) (g) Register September 2010 No. 657, eff. 10−1−10.
    (5) Any application for registration which is not completed or
withdrawn within 6 months from the date it is initially received              DFI−Sec 4.02 Net capital requirements and aggre-
may be deemed materially incomplete, and the division may issue           gate indebtedness limitations. (1) Every broker−dealer,
an order denying the registration.                                        whether or not subject to rule 15c3−1 of the securities exchange
                                                                          act of 1934, shall maintain net capital in such minimum amounts
    (6) (a) Pursuant to s. 551.406 (3) (b), Stats., the effective date    as are designated in that rule for the activities to be engaged in by
of a registration application is deferred until noon on the 45th day      the broker−dealer in this state.
after the filing of any amendment completing the application,
unless the application otherwise becomes effective under s.                   (2) The aggregate indebtedness of each broker−dealer to all
                                                                          other persons shall not exceed the levels prescribed under rule
551.406 (3) (a), Stats.
                                                                          15c3−1 of the securities exchange act of 1934.
    (b) For purposes of s. 551.406 (3) (b), Stats., a written request         (3) If a broker−dealer is an individual, the person shall segre-
for additional information is not limited to a request to the appli-      gate from personal capital an amount sufficient to satisfy the net
cant or the applicant’s employing broker−dealer, and the division         capital requirement, and the amount so segregated shall be uti-
may request additional information from third−party sources rele-         lized solely for the business for which the broker−dealer is regis-
vant to the review of the application.                                    tered.
    (c) Before action on an application, the division may designate           (4) The division may by order exempt any broker−dealer from
an employee to make an examination of the books, records and              the provisions of this subsection, either unconditionally or upon
affairs of the applicant at the applicant’s expense.                      specified conditions, if by reason of the broker−dealer’s member-
    (7) A securities agent registration is effective to authorize the     ship on a national securities exchange or the special nature of its
licensee [registrant] to effectuate transactions only in the types of     business and its financial position, and the safeguards that have
categories of securities that the licensee [registrant] has been qual-    been established for the protection of customers’ funds and securi-
ified to sell by passing the examinations specified in sub. (3).          ties, the provisions are not necessary in the public interest or for
  Note: The correct word is shown in brackets.                            the protection of investors.
    (8) For an agent to simultaneously represent in this state more         History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (3) and (4),
than one broker−dealer pursuant to s. 551.402 (5), Stats., or an          Register, December, 1980, No. 300, eff. 1−1−81; am. (1), Register, December, 1982,
                                                                          No. 324, eff. 1−1−83; am. (1), Register, December, 1983, No. 336, eff. 1−1−84; CR
issuer pursuant to s. 551.402 (6), Stats., the following require-         08−077: am. (3) Register December 2008 No. 636, eff. 1−1−09.
ments shall be met, in addition to the regular agent registration
requirements:                                                                DFI−Sec 4.03 Broker−dealers’ records. (1) Every
    (a) Each broker−dealer or issuer that the agent represents shall      registered broker−dealer shall prepare and keep current at its prin-
sign on a form designated by the division in s. DFI−Sec 9.01 (1)          cipal office the books and records as described in rules 17a−3 and
(b), a written grant of permission to the agent to represent the other    17a−4 under the securities exchange act of 1934.
employers. The written grant of permission shall include the iden-           (2) Every registered broker−dealer shall preserve the records
tity of all other securities employment affiliations of the agent and     required under sub. (1) according to the schedule provided in rule
contain a listing of all restrictions on the agent’s securities activi-   17a−4 under the securities exchange act of 1934 in compliance
ties imposed by the agent’s employers.                                    with the requirements of the U.S. securities and exchange com-
    (b) The agent shall sign on the form under par. (a), an acknowl-      mission concerning preservation and microfilming of records or
edgement and verification of the information required under that          other means of retention of records.
paragraph.                                                                   (3) Every branch office of a registered broker−dealer, as
    (c) The manually signed original of the form under par. (a)           defined under s. DFI−Sec 1.02 (7), shall prepare and keep current
shall be filed with the division together with a written application,     the branch office books and records as described in rule 17a−3(f)
which may be in letter form, on behalf of the agent to simulta-           under the securities exchange act of 1934.
neously represent more than one broker−dealer or issuer. The                 (4) Every registered broker−dealer shall preserve the branch
division shall approve the application in writing prior to the            office records required under sub. (3) according to the schedule
agent’s transacting securities business while simultaneously rep-         provided in rule 17a−4(k) under the securities exchange act of
resenting more than one broker−dealer or issuer.                          1934 in compliance with the requirements of the U.S. securities


Register, September, 2010, No. 657
19                                                        DEPARTMENT OF FINANCIAL INSTITUTIONS                                                                        DFI−Sec 4.05

                      Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

and exchange commission concerning preservation and micro-                                           (a) Immediate electronic or written notice whenever the net
filming of records or other means of retention of records.                                       capital of the broker−dealer is less than is required under s. DFI−
    (5) This section does not require a registered broker−dealer to                              Sec 4.02 (1), specifying the respective amounts of its net capital
make and keep such records of transactions cleared for the                                       and aggregate indebtedness on the date of the notice;
licensee [registrant] by another broker−dealer as are customarily                                    (b) A copy of every report or notice required to be filed by the
made and kept by the clearing broker−dealer.                                                     broker−dealer pursuant to rule 17a−11 under the securities
    (6) The division may by order exempt any broker−dealer from                                  exchange act of 1934, contemporaneous with the date of filing
all or part of the requirements of this section, either uncondition-                             with the U.S. securities and exchange commission.
ally or upon specified conditions, if by reason of the special nature                                (5) Each broker−dealer shall give immediate electronic or
of its business, the division finds the issuance of the order is neces-                          written notice to the division of the theft or disappearance of any
sary or appropriate in the public interest or for the protection of                              Wisconsin customers’ securities or funds that are in the custody
investors.                                                                                       or control of any of its offices, whether within or outside this state,
   History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (3) (intro) and              stating all material facts known to it concerning the theft or disap-
cr. (3) (d), Register, September, 1978, No. 273, eff. 10−1−78; r. and recr. (1) (p), Reg-        pearance.
ister, December, 1979, No. 288, eff. 1−1−80; am. (1) (c), (d) 4., (e), (j), (k), (2), (3)
(intro.), (a) and (b), (4) to (6), r. and recr. (1) (l), renum. (1) (m) to (p) to be (1) (n)         (6) Each broker−dealer shall file with the division a copy of
to (q), (3) (c) and (d) to be (3) (d) and (e) and am., cr. (1) (r) and (3) (c), (1) (s) renum.   any subordination agreement relating to the broker−dealer, within
from SEC 4.05 (9), Register, December, 1980, No. 300, eff. 1−1−81; am. (1) (r) and
(4), Register, December, 1981, No. 312, eff. 1−1−82; r. (1) (s), am. (2), (3) (a) and (e),       10 days after the agreement has been entered, unless prior thereto
Register, December, 1982, No. 324, eff. 1−1−83; am. (1) (b) and (2), Register,                   the broker−dealer has filed a copy of the agreement with a national
December, 1983, No. 336, eff. 1−1−84; am. (1) (r), (2) and (4), Register, December,              securities exchange or association of which it is a member.
1984, No. 348, eff. 1−1−85; am. (1) (r), Register, December, 1985, No. 360, eff.
1−1−86; am. (2), Register, December, 1986, No. 372, eff. 1−1−87; am. (1) (intro.) and                (7) (a) Each broker−dealer shall notify the division in writing
cr. (1) (s), Register, December, 1987, No. 384, eff. 1−1−88; am. (1) (j), Register,              within 14 days of either the opening or the change of address in
December, 1989, No. 408, eff. 1−1−90; am. (3) (intro.), Register, December, 1991,
No. 432, eff. 1−1−92; am. (1) (intro.), (r) 2., (2) and (3) (e), Register, December, 1992,       this state of any “branch office” as defined in s. DFI−Sec 1.02 (7).
No. 444, eff. 1−1−93; renum. (2) to (2) (a) and am., cr. (2) (b), Register, December,                (b) Each broker−dealer shall notify the division in writing not
1994, No. 468, eff. 1−1−95; am. (3) (c), renum. (6) to be (7), cr. (6), Register, Decem-         later than 14 days after the closing in this state of any “branch
ber, 1995, No. 480, eff. 1−1−96; am (1) (j), Register, December, 2000, No. 540, eff.
1−1−01; correction in (1) (p) made under s. 13.93 (2m) (b) 7., Stats., Register August           office” as defined in s. DFI−Sec 1.02 (7), which notice shall spec-
2002 No. 560; CR 03−068: r. and recr. (1) to (4), r. (6), renum. (7) to be (6) Register          ify the effective date of the closing.
November 2003 No. 575, eff. 12−1−2003; CR 08−077: am. (1) to (5) Register Decem-
ber 2008 No. 636, eff. 1−1−09; correction in (3) made under s. 13.92 (4) (b) 7., Stats.,             (c) The notification required to be provided to the division
Register December 2008 No. 636.                                                                  under par. (a) or (b) shall be made electronically on Form BR via
                                                                                                 the central registration depository by broker−dealers eligible to
    DFI−Sec 4.04 Reporting requirements.                      (1) (a)                            file electronically, and shall be made directly with the division by
Except as provided in pars. (b) and (c), each broker−dealer shall                                broker−dealers that are not eligible to file electronically with the
file annually with the division within 60 days from the end of its                               central registration depository.
fiscal year a copy of its annual financial statement in the form spe-                                (d) The notice filed for a branch opening pursuant to par. (a)
cified in rule 17a−5 under the securities exchange act of 1934,                                  is deemed filed in accordance with par. (c) upon receipt by the
accompanied by a computation of its net capital using the formula                                division of the appropriate filing fee and any late filing fee due
specified in rule 15c3−1 under the securities exchange act of 1934.                              pursuant to s. DFI−Sec 7.01 (6) (d).
    (b) The filing requirement in par. (a) is not applicable to any                                  (8) Each broker−dealer shall file a branch office renewal
broker−dealer registered under the securities exchange act of                                    notice annually with the central registration depository by broker−
1934 if the broker−dealer is not delinquent in the filing of its                                 dealers eligible to file electronically, and shall be made directly
annual financial statements with the U.S. securities and exchange                                with the division by broker−dealers that are not eligible to file
commission under rule 17a−5 of the securities exchange act of                                    electronically with the central registration depository.
1934.                                                                                               History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (1) and (3),
                                                                                                 Register, December, 1979, No. 288, eff. 1−1−80; am. (4), (5), (8) and (9), Register,
    (c) The deadline established under par. (a) for a broker−dealer                              December, 1980, No. 300, eff. 1−1−81; am. (1) and (7), cr. (1) (b), Register, Decem-
to file its annual financial statement shall be extended for an addi-                            ber, 1982, No. 324, eff. 1−1−83; am. (1) (a), Register, December, 1983, No. 336, eff.
                                                                                                 1−1−84; r. and recr. (1) (a), renum. (1) (b) to be (1) (c), cr. (1) (b) and am. (9), Register,
tional 30 days upon the broker−dealer filing with the division                                   December, 1984, No. 348, eff. 1−1−85; cr. (10), Register, December, 1985, No. 360,
before the deadline date, a written request for an additional 30                                 eff. 1−1−86; r. and recr. (3), Register, December, 1989, No. 408, eff. 1−1−90; r. and
days to file its annual financial statement.                                                     recr. (4), r. (5), renum. (6) to (10) to be (5) to (9), Register, December, 1990, No. 420,
                                                                                                 eff. 1−1−91; renum. (8) to be (8) (a) and am., cr. (8) (b) and (c), Register, December,
    (2) Each broker−dealer shall file with the division a copy of                                1991, No. 432, eff. 1−1−92; renum. (4) to be (4) (a), cr. (4) (b), Register, December,
every complaint or equivalent pleading related to its business,                                  1994, No. 468, eff. 1−1−95; am. (8) (b), Register, December, 1995, No. 480, eff.
                                                                                                 1−1−96; am. (2), Register, December, 1996, No. 492, eff. 1−1−97; reprinted to correct
transactions, or operations in this state, naming the broker−dealer                              printing error in (1) (a), Register, April, 1998, No. 508; am. (5) (a) and (6), Register,
or any of its partners, officers or agents as defendants in any civil                            December, 1999, No. 528, eff. 1−1−00; CR 01−082: am. (8) (a), Register December
or criminal proceeding, or in any administrative or disciplinary                                 2001 No. 552, eff. 1−1−02; CR 02−102: r. (3), renum. (4) to (9) to be (3) to (8) and
                                                                                                 am. (3) (a), Register December 2002 No. 564, eff. 1−1−03; CR 08−077: renum. (3)
proceeding by any public or private regulatory agency, within 20                                 (a) to be (3) and am., r. (3) (b), r. and recr. (7) (c) and (8) Register December 2008 No.
days of the date the complaint or equivalent pleading is served on                               636, eff. 1−1−09; corrections in (7) (a) and (b) made under s. 13.92 (4) (b) 7., Stats.,
                                                                                                 Register December 2008 No. 636; CR 10−062: cr. (7) (d) Register September 2010
the broker−dealer, or the broker−dealer otherwise receives notice                                No. 657, eff. 10−1−10.
thereof; a copy of every answer or reply thereto within 10 days of
the date it is filed; and a copy of the decision, order, or sanction                                DFI−Sec 4.05 Practice rules. (1) (a) Except as pro-
made with respect to the proceeding within 20 days of the date the                               vided in pars. (b) and (c), each broker−dealer shall give or send to
decision, order, or sanction is rendered.                                                        the customer a written confirmation, promptly after execution of,
    (3) Except as provided in subs. (2) and (8), each broker−dealer                              and before completion of, each transaction. The confirmation
shall file with the division any notice of change of control or                                  shall set forth the information prescribed in rule 10b−10 of the
change of name, as well as any material change in the information                                securities and exchange act of 1934 and whether the transaction
included in the broker−dealer’s most recent application for regis-                               was unsolicited.
tration, in an amendment to Form BD filed with the central regis-                                   (b) A broker−dealer engaged solely in the offer and sale of
tration depository within 30 days of the date of the change.                                     securities issued by open−end investment companies, face
    (4) Every broker−dealer shall file with the division the follow-                             amount certificate companies or unit investment trusts registered
ing reports concerning its net capital and aggregate indebtedness:                               under the investment company act of 1940 is not required to give


                                                                                                                                                    Register, September, 2010, No. 657
 DFI−Sec 4.05                                  WISCONSIN ADMINISTRATIVE CODE                                                              20

                 Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

or send a written confirmation under par. (a), provided that the            (8) No broker−dealer shall conduct broker−dealer services on
issuer gives or sends a written confirmation directly to the cus-       the premises of a financial institution where retail deposits are
tomer for the transaction.                                              taken unless the broker−dealer complies initially and continu-
    (c) A broker−dealer engaged solely in the offer and sale of         ously with all of the following requirements:
interests in direct participation programs is not required to give or       (a) The broker−dealer services shall be conducted, wherever
send a written confirmation under par. (a), provided that a cus-        practical, in a physical location distinct from the area in which the
tomer subscribing to purchase an interest in a direct participation     financial institution’s retail deposits are taken. In all situations,
program is provided immediately upon subscription with a copy           the broker−dealer shall identify its services in a manner that
of the subscription agreement entered into and the issuer gives or      clearly distinguishes those services from the financial institution’s
sends a written confirmation directly to the customer for the trans-    retail deposit−taking activities. The broker−dealer’s name shall
action.                                                                 be clearly displayed in the area in which the broker−dealer con-
    (2) Each broker−dealer shall establish and keep current a set       ducts its broker−dealer services. Nothing in this paragraph pro-
of written supervisory procedures and a system for applying such        hibits the financial institution from carrying out other activities
procedures, which may be reasonably expected to prevent and             within the designated area, provided that no promotional signs or
detect any violations of ch. 551, Stats., and rules and orders there-   materials shall be displayed in the designated area other than those
under. The procedures shall include the designation, by name or         relating to the securities services.
title, of a number of supervisory employees reasonable in relation          (b) Networking and brokerage affiliate arrangements shall be
to the number of its registered agents, offices and transactions in     governed by a written agreement that sets forth the responsibilities
this state. A complete set of the procedures and system for apply-      of the parties and the compensation arrangements. Networking
ing them shall be kept and maintained at every branch office.           and brokerage affiliate arrangements shall provide that supervi-
    (3) A broker−dealer shall not enter any contract with a cus-        sory personnel of the broker−dealer and representatives of state
tomer if the contract contains any condition, stipulation or provi-     securities authorities, where authorized by state law, will be per-
sion binding the customer to waive any rights under ch. 551,            mitted access to the financial institution’s premises where the bro-
Stats., or any rule or order thereunder. Any such condition, stipu-     ker−dealer conducts securities services in order to inspect the
lation or provision is void.                                            books and records and other relevant information maintained by
                                                                        the broker−dealer with respect to its securities services. The bro-
    (4) No broker−dealer shall permit or effect a withdrawal of
                                                                        ker−dealer shall ensure that the networking and brokerage affili-
any part of its net worth, including subordinated indebtedness,
                                                                        ate arrangement clearly outlines the duties and responsibilities of
whether by redemption, retirement, repurchase, repayment or
                                                                        all parties. For purposes of this paragraph, “networking arrange-
otherwise, that would cause its net capital or its aggregate
                                                                        ment” and “brokerage affiliate arrangement” mean a contractual
indebtedness to violate s. DFI−Sec 4.02 (1) or (2), without prior
                                                                        or other arrangement between a broker−dealer and a financial
written approval of the division.
                                                                        institution pursuant to which the broker−dealer conducts securi-
    (5) Each broker−dealer shall provide each customer with a           ties services on the premises of a financial institution where retail
conformed copy of all contracts and agreements between the bro-         deposits are taken.
ker−dealer and the customer not later than 30 days after the cus-           (c) At or prior to the time that a customer’s securities brokerage
tomer’s account is first established on the books and records of the    account is opened by a broker−dealer on the premises of a finan-
broker−dealer. Each broker−dealer shall provide each customer           cial institution where retail deposits are taken, the broker−dealer
with a conformed copy of the customer information pursuant to           shall comply with all of the following.
the requirements of rule 17a−3(a)(17) under the securities
exchange act of 1934. Each contract or agreement and new                     1. Disclose to the customer, orally and in writing, all of the
account form for a customer whose account involves both an              following information about the securities products purchased or
introducing broker and a clearing broker who provides services to       sold in a transaction with the broker−dealer:
the customer, shall contain or be accompanied by a disclosure of             a. The securities products are not insured by the Federal
the identity and address of each broker−dealer.                         Deposit Insurance Corporation (“FDIC”), or by other deposit
    (6) Every broker−dealer whose principal office is located in        insurance required by the financial institution’s governmental
this state, other than a broker−dealer engaged solely in the offer      regulatory authority.
and sale of either interests in direct participation programs or             b. The securities products are not deposits or other obligations
securities issued by open−end investment companies, face                of the financial institution, and are not guaranteed by the financial
amount certificate companies or unit investment trusts registered       institution.
under the investment company act of 1940, shall have at least one            c. The securities products are subject to investment risks,
registered person employed on a full−time basis at its principal        including possible loss of the principal invested.
office.                                                                      2. Make reasonable efforts to obtain from each customer dur-
    (7) No broker−dealer may associate with a bank, savings insti-      ing the account−opening process, a written acknowledgment of
tution, trust company, savings and loan association or credit union     the disclosures required by subd. 1.
by contract, agreement or other means for the purpose of that               (d) If securities services include any written or oral representa-
entity publishing or circulating advertising promoting the services     tions concerning insurance coverage, other than FDIC or similar
offered by the broker−dealer or assisting or providing information      insurance coverage, then clear and accurate, written or oral
to persons to establish an account with the broker−dealer unless:       explanations of the coverage shall also be provided to the custom-
    (a) The promotional or account−establishing functions are per-      ers when the representations are first made.
formed by persons registered as securities agents representing the          (e) Recommendations by a broker−dealer concerning any
broker−dealer; or                                                       non−deposit investment product with a name similar to that of the
    (b) The promotional or account−establishing functions are           financial institution shall occur only pursuant to a sales program
performed by persons who are supervised by one of at least 2 per-       designed to minimize the risk of customer confusion.
sons at the bank, savings institution, trust company, savings and           (f) All confirmations and account statements shall indicate
loan association or credit union who are officers, branch or assis-     clearly that the broker−dealer services are provided by the broker−
tant branch managers or other employees occupying a similar             dealer.
office or performing similar functions at each location where pro-          (g) Advertisements and sales literature that announce the loca-
motional or account−opening functions are performed, and are            tion of a financial institution where broker−dealer services are
registered as securities agents representing the broker−dealer.         provided by the broker−dealer, or that are distributed by the bro-


Register, September, 2010, No. 657
21                                          DEPARTMENT OF FINANCIAL INSTITUTIONS                                                                  DFI−Sec 4.06

                Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

ker−dealer on the premises of a financial institution, shall disclose          2. A description of the procedure a customer may follow to
using the following language or using the shorter, logo format lan-       maintain the customer’s account with the broker−dealer, transfer
guage in par. (h), the information in each of the following subdivi-      the account to another broker−dealer, or have securities and funds
sion paragraphs about the securities products purchased or sold in        held by the broker−dealer delivered to the customer;
a transaction with the broker−dealer:                                          3. The name and telephone number of a person representing
     1. The securities products are not insured by the FDIC or by         the broker−dealer who may be contacted without expense to the
other deposit insurance required by the financial institution’s gov-      customer to answer questions regarding items in subd. 2.; and
ernmental regulatory authority.                                                4. Any additional information necessary under the circum-
     2. The securities products are not deposits or other obligations     stances to clarify the information prescribed in this paragraph.
of the financial institution, and are not guaranteed by the financial         (b) The notification requirement under par. (a) is not applica-
institution.                                                              ble to the cessation of business at an office where the cessation is
     3. The securities products are subject to investment risks,          caused by illness or death of all registered agents at that office, if
including possible loss of the principal invested.                        the cessation of business at the office does not occur for a period
    (h) The following shorter, logo format disclosures may be used        exceeding 14 days.
by a broker−dealer in advertisements and sales literature, includ-            (10) Each broker−dealer shall disclose in writing to customers
ing material published, or designed for use, in radio or television       at the time of opening an account, any custody fees, service fees,
broadcasts, automated teller machine screens, billboards, signs,          or maintenance fees that may be charged to the customer and the
posters and brochures, to comply with the requirements of par. (g),       basis upon which the charges are determined. Customers shall
provided that the disclosures are displayed in a conspicuous man-         receive written notice at least 45 days prior to the imposition of
ner:                                                                      any new custody, service, maintenance or similar fees, or any
     1. Not FDIC Insured.                                                 changes to existing fees of that nature.
     2. No Bank Guarantee.                                                    (11) No broker−dealer or agent, in connection with a tele-
     3. May Lose Value.                                                   phone or electronic solicitation, shall:
    (i) Provided that the omission of the disclosures required by             (a) Fail to provide both the caller’s identity and the identity of
par. (g) would not cause the advertisement or sales literature to be      the broker−dealer with whom the caller is affiliated, at the begin-
misleading in light of the context in which the material is pre-          ning of any telephone or electronic solicitation.
sented, the disclosures in par. (g) shall not be not required with            (b) Telephone any person in this state between the hours of
respect to messages contained in any of the following:                    9:00 PM and 8:00 AM local time at the called person’s location
     1. Radio broadcasts of 30 seconds or less.                           without that individual’s prior consent.
     2. Electronic signs, including billboard−type signs that are             (c) Telephone or electronically solicit any person in this state
electronic, time, and temperature signs and ticker−tape signs, but        after that individual has requested that he or she not be telephoned.
excluding messages contained in media such as television, on−                 (d) Make repeated telephone or electronic solicitations in an
line computer services, or automated teller machines.                     annoying, abusive or harassing manner, either individually or in
     3. Signs, such as banners and posters, when used only as loca-       concert with others.
tion indicators.                                                              (e) Use threats, intimidation or obscene language in connec-
    (j) The broker−dealer shall promptly notify the financial insti-      tion with securities recommendations, transactions or other bro-
tution if any agent of the broker−dealer who is employed by the           kerage account activities.
financial institution is terminated for cause by the broker−dealer.           History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (8), (intro.),
                                                                          Register, September, 1978, No. 273, eff. 10−1−78; r. (5), renum. (6) to (8) to be (4)
    (k) The broker−dealer shall establish written supervisory pro-        to (6) and am. (5), (6) (intro.), (a) and (b), cr. (7), Register, December, 1980, No. 300,
cedures and a system for applying the procedures. The procedures          eff. 1−1−81; am. (6) (intro.) and r. (9), Register, December, 1981, No. 312, eff.
                                                                          1−1−82; renum. (6) to be SEC 4.035, renum. (7) and (8) to be (6) and (7) and am. (6),
shall comply with sub. (2) and shall be designed to accomplish            Register, December, 1982, No. 324, eff. 1−1−83; emerg. cr. (8), eff. 4−15−83; cr. (8),
certain supervisory functions, including but not limited to the fol-      Register, August, 1983, No. 332, eff. 9−1−83; am. (1) (a), r. and recr. (1) (b), cr. (1)
lowing:                                                                   (c), (9) and (10), Register, December, 1984, No. 348, eff. 1−1−85; am. (7), Register,
                                                                          December, 1985, No. 360, eff. 1−1−86; am. (5), Register, December, 1987, No. 384,
     1. Prevention and detection of violations of ch. 551, Stats.,        eff. 1−1−88; am. (6), Register, December, 1989, No. 408, eff. 1−1−90; am. (5), cr.
and any applicable rules and orders thereunder;                           (11), Register, December, 1991, No. 432, eff. 1−1−92; am. (6), Register, December,
                                                                          1992, No. 444, eff. 1−1−93; am. (6), (9) (c), (d) (intro.), r. and recr. (9) (e), Register,
     2. Establishment of a system under which the broker−dealer           December, 1994, No. 468, eff. 1−1−95; am. (5) and (6), Register, December, 1995,
approves prior to use copies of all advertising used by the financial     No. 480, eff. 1−1−96; am. (5), cr. (12), Register, December, 1996, No. 492, eff.
                                                                          1−1−97; r. and recr. (9), Register, December, 1999, No. 528, eff. 1−1−00; CR 01−082:
institution relating to the securities services conducted on the          r. (6), Register December 2001 No. 552, eff. 1−1−02; CR 02−102: renum. (7) to (12)
premises of the financial institution for the purpose of ensuring         to be (6) to (11) and am. (8) (L), Register December 2002 No. 564, eff. 1−1−03; CR
compliance with ss. 551.501 and 551.504, Stats.; and                      03−068: am. (5) Register November 2003 No. 575, eff. 12−1−2003; CR 08−077: am.
                                                                          (title), (2), (6), (7) (a), (b), (8) (b), (d), (k) 2., (9) (a) (intro.) and (b) Register December
     3. Establishment of a system for prompt and proper execution         2008 No. 636, eff. 1−1−09.
and settlement of securities transaction orders, the safekeeping of
customer funds and securities, and the maintenance of books and              DFI−Sec 4.06 Prohibited conduct. (1) The following
records.                                                                  are deemed “dishonest or unethical business practices” or “taking
    (L) Notify the division at the time of filing the notice of open-     unfair advantage of a customer” by a broker−dealer under s.
ing or change of address of a branch office as required in s. DFI−        551.412 (4) (m), Stats., without limiting those terms to the prac-
Sec 4.04 (7), that the office is located on the premises of a financial   tices specified herein:
institution in this state, which notification shall include the iden-        (a) Causing any unreasonable delay in the transmitting of cus-
tity of the institution.                                                  tomer orders for execution, the delivery of securities purchased by
    (9) (a) Except as provided in par. (b), each registered broker−       any of its customers, the payment upon request of free credit bal-
dealer engaged in a general securities business that ceases to do         ances reflecting completed transactions of any of its customers or
business at a principal or branch office located in Wisconsin shall       the transfer of a customer’s account securities positions and bal-
mail to each Wisconsin customer with an account at the office at          ances to another broker−dealer;
least 14 days before the cessation of business at the office a written       (b) Inducing trading in a customer’s account which is exces-
notification that shall contain the following information:                sive in size or frequency in view of the financial resources and
     1. The date on which the office will cease to do business;           character of the account;


                                                                                                                              Register, September, 2010, No. 657
 DFI−Sec 4.06                                   WISCONSIN ADMINISTRATIVE CODE                                                                                  22

                 Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

    (c) 1. Recommending to a customer the purchase, sale or               either a final prospectus or a preliminary prospectus and an addi-
exchange of any security without reasonable grounds to believe            tional document, which together include all information set forth
that the recommendation is suitable for the customer on the basis         in the final prospectus;
of information furnished by the customer after reasonable inquiry             (s) Introducing customer transactions on a “fully disclosed”
concerning the customer’s investment objectives, financial situa-         basis to another broker−dealer that is not registered under ch. 551,
tion and needs, and any other information known by the broker−            Stats., unless the customer is a person described in s. 551.401 (2),
dealer;                                                                   Stats., or s. DFI−Sec 4.10;
     2. For purposes of making purchase recommendations to a                  (t) Recommending to a customer that the customer engage the
customer with respect to direct participation program securities,         services of an investment adviser, broker−dealer or agent not reg-
the following investor financial income and net worth suitability         istered under ch. 551, Stats., unless the customer is a person
standards do not preclude the use of any other information, includ-       described in s. 551.401 (2) (h) or 551.402 (2) (i), Stats., or s. DFI−
ing without limitation the criteria in subd. 1., to establish suitabil-   Sec 4.10;
ity or lack of suitability in specific instances:                             (u) Failing to accurately describe or disclose in advertising or
     a. The customer has an annual gross income of at least               other materials used in connection with the promotion or transac-
$70,000 and a net worth of at least $70,000 exclusive of the cus-         tion of securities business in this state, the identity of the broker−
tomer’s principal residence and its furnishing and personal use           dealer or the issuer. For purposes of this paragraph, “other materi-
automobiles; or                                                           als” includes, but is not limited to, business cards, business
     b. The customer has a net worth of at least $250,000, exclu-         stationery and display signs.
sive of the customer’s principal residence and its furnishings and            (v) Disclosing the identity, investments, or other financial
personal use automobiles.                                                 information of any customer or former client unless required by
    (d) Executing a transaction on behalf of a customer without           law to do so, or unless consented to by the client.
authority to do so, except that use by a broker−dealer of a negative          (w) Using any term or abbreviation thereof in a manner that
response letter in conformity with rule 2510(d)(2) of the financial       misleadingly states or implies that a person has special expertise,
industry regulatory authority is not a violation of this rule;            certification, or training in financial planning, including the mis-
    (e) Executing a transaction for the account of a customer upon        leading use of a senior−specific certification or designation as set
instructions from a 3rd party without first having obtained written       forth in ch. DFI−Sec 10.
3rd party authorization from the customer;                                    (2) The following are deemed “dishonest or unethical busi-
    (f) Exercising any discretionary power in effecting a transac-        ness practices” or “taking unfair advantage of a customer” by an
tion for a customer’s account without first obtaining written dis-        agent under s. 551.412 (4) (m), Stats., without limiting those terms
cretionary authority from the customer, unless the discretionary          to the practices specified in this subsection:
power relates solely to the time or price for the execution of orders         (a) Borrowing money or securities from, or lending money or
pursuant to rule 2510(d)(1) of the financial industry regulatory          securities to, a customer of the agent or the broker−dealer that
authority;                                                                employs the agent unless that customer is a financial institution or
    (g) Extending, arranging for, or participating in arranging for       institutional investor designated in s. 551.401 (2) (b) or (c), Stats.
credit to a customer in violation of the securities exchange act of           (b) Acting as a custodian for money, securities or an executed
1934 or the regulations of the federal reserve board;                     stock power of a customer;
    (h) Executing any transaction in a margin account without                 (c) Effecting any securities transaction not recorded on the reg-
obtaining from its customer a written margin agreement not later          ular books or records of the broker−dealer which the agent repre-
than 15 calendar days after the initial transaction in the account;       sents, unless the transaction is disclosed to, and authorized in writ-
    (i) Failing to segregate customers’ free securities or securities     ing by, the broker−dealer prior to execution of the transaction;
in safe−keeping;                                                              (d) Effecting transactions in securities for an account operating
    (j) Hypothecating a customer’s securities without having a lien       under a fictitious name, unless disclosed to, and permitted in writ-
thereon unless written consent of the customer is first obtained,         ing by, the broker−dealer or issuer which the agent represents;
except as permitted by rules of the U.S. securities and exchange              (e) Sharing directly or indirectly in profits or losses in the
commission;                                                               account of any customer without first obtaining written authoriza-
    (k) Charging its customer an unreasonable commission or ser-          tion of the customer and the broker−dealer which the agent repre-
vice charge in any transaction executed as agent for the customer;        sents;
    (L) Entering into a transaction for its own account with a cus-           (f) Dividing or otherwise splitting commissions, profits or
tomer with an unreasonable mark−up or mark−down;                          other compensation receivable in connection with the purchase or
    (m) Entering into a transaction for its own account with a cus-       sale of securities in this state with any person not also registered
tomer in which a commission is charged;                                   as an agent for the same broker−dealer, or for a broker−dealer
    (n) Entering into a transaction with or for a customer at a price     under direct or indirect common control; and
not reasonably related to the current market price;                           (g) Failing to accurately describe or disclose in advertising or
    (o) Executing orders for the purchase by a customer of securi-        other materials used in connection with the promotion or transac-
ties not registered under s. 551.303 or 551.304, Stats., unless the       tion of securities business in this state, the identity of an agent’s
securities are exempted under s. 551.201, Stats., or the transaction      employing broker−dealer or issuer or the nature of the agent’s
is exempted under s. 551.202, Stats.;                                     securities services offered. For purposes of this paragraph, “other
    (p) Representing itself as a financial or investment planner,         materials” include, but are not limited to, business cards, business
consultant, or adviser, when the representation does not accu-            stationery and display signs.
rately describe the nature of the services offered, the qualifications        (h) Misrepresenting the services of a registered investment
of the person offering the services, and the method of compensa-          adviser on whose behalf the agent is soliciting business or
tion for the services;                                                    accounts.
    (q) Violating any rule of any securities exchange or national             (i) Engaging in any of the practices specified in sub. (1) (a), (b),
securities association of which it is a member with respect to any        (c), (d), (e), (f), (g), (h), (o), (p), (q), (r), (t), (v) and (w).
customer, transaction or business in this state;                             History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; r. (1) (u), Register,
                                                                          September, 1978, No. 273, eff. 10−1−78; am. (2) (g), Register, December, 1979, No.
    (r) Failing to furnish to a customer purchasing securities in an      288, eff. 1−1−80; renum. (1) (e) to (u) to be (1) (f) to (v) and am. (1) (f), (p) and (q),
offering, not later than the date of confirmation of the transaction,     cr. (1) (e) and (2) (g), am. (2) (intro.), (a), (d) and (h), Register, December, 1980, No.



Register, September, 2010, No. 657
23                                                        DEPARTMENT OF FINANCIAL INSTITUTIONS                                                                       DFI−Sec 4.10

                      Unofficial Text (See Printed Volume). Current through date and Register shown on Title Page.

300, eff. 1−1−81; r. (1) (u) and am. (2) (h), Register, December, 1981, No. 312, eff.                DFI−Sec 4.09 Denial, suspension, revocation and
1−1−82; am. (1) (h), renum. (2) (h) to be (2) (i) and cr. (2) (h), Register, December,
1982, No. 324, eff. 1−1−83; am. (2) (e), Register, December, 1983, No. 336, eff.                  censure. (1) Any order denying, suspending or revoking the
1−1−84; am. (1) (a), Register, December, 1984, No. 348, eff. 1−1−85; am. (1) (t), Reg-            registration of a broker−dealer or agent or censuring a registrant
ister, December, 1986, No. 372, eff. 1−1−87; am. (1) (a), r. and recr. (2) (g), Register,         may include such other sanctions as the division finds appropriate.
December, 1988, No. 396, eff. 1−1−89; am. (2) (a), Register, December, 1992, No.
444, eff. 1−1−93; am. (1) (d) and (2) (c), cr. (1) (u), Register, December, 1994, No.                (2) For purposes of s. 551.412 (1), Stats., the public interest or
468, eff. 1−1−95; renum. (1) (c) to be (1) (c) 1., cr. (1) (c) 2., am. (1) (s) to (u), (2) (a),   protection of investors does not require a showing of ongoing
Register, December, 1996, No. 492, eff. 1−1−97; am. (2) (i), Register, December,
2000, No. 540, eff. 1−1−01; CR 02−102: am. (1) (d), Register December 2002 No.                    harm to summarily deny an application for a registration as a bro-
564, eff. 1−1−03; CR 08−077: am. (title), (1) (intro.), (c) 2. a., b., (d), (f), (o), (s), (t),   ker−dealer or agent.
(2) (intro.), (a), (f), (h) and (i), cr. (1) (v) Register December 2008 No. 636, eff.                 History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; renum. (1) and am.,
1−1−09; EmR0829: emerg. cr. (1) (w), am. (2) (i), eff. 9−18−08; CR 08−095: cr. (1)                r. (2), Register, December, 1981, No. 312, eff. 1−1−82; CR 08−077: renum. to be (1)
(w), am. (2) (i) Register March 2009 No. 639, eff. 4−1−09.                                        and am., cr. (2) Register December 2008 No. 636, eff. 1−1−09.

   DFI−Sec 4.07 Registration period. (1) The registra-                                                DFI−Sec 4.10 Registration exemptions. (1) For pur-
tion of an agent is not effective during any period when any of the                               poses of ss. 551.401 (2) (h) and 551.402 (2) (i), Stats., a broker−
following apply:                                                                                  dealer or agent is exempt from the registration requirement if the
   (a) The broker−dealer that the agent represents is not regis-                                  broker−dealer’s or agent’s only transactions effected in this state
tered.                                                                                            are with:
   (b) When the securities of the issuer that the agent represents                                    (a) This state or any of its agencies or political subdivisions or
are not subject to an effective registration statement or an effective                            the state investment board.
exemption, or upon termination of the offering.
                                                                                                      (b) The federal government or any of its agencies or instru-
   (c) The agent’s status with the financial industry regulatory                                  mentalities.
authority or a national securities exchange is deficient for failure
to meet continuing education requirements.                                                            (2) For purposes of s. 551.402 (2), Stats., an agent is exempt
                                                                                                  from the registration requirement if the agent represents an issuer
   (2) The division may by order limit the period of, or specify                                  in effecting transactions in a security exempted by s. 551.201,
an earlier expiration date for, any registration.                                                 Stats.
   History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. Register,
December, 1980, No. 300, eff. 1−1−81; am. (1), Register, December, 1982, No. 324,                     (3) A person who gives a group presentation relating to an
eff. 1−1−83; am. (1), Register, December, 1983, No. 336, eff. 1−1−84; am. (2), Regis-             issuer or the securities of an issuer at a meeting or seminar spon-
ter, December, 1984, No. 348, eff. 1−1−85; am. (1) (a) and (b), r. (1) (c), renum. (1)
(d) and (e) to be (1) (c) and (d), Register, December, 1985, No. 360, eff. 1−1−86; am.            sored by a broker−dealer registered under this chapter is not
(1) (c), Register, December, 1994, No. 468, eff. 1−1−95; CR 02−102: r. and recr (2),              required to register as an agent if the person makes no solicita-
Register December 2002 No. 564, eff. 1−1−03; CR 08−077: r. and recr. Register                     tions, offers or sales of the issuer’s securities on an individual
December 2008 No. 636, eff. 1−1−09.
                                                                                                  basis with any person in this state and if the person does not in any
   DFI−Sec 4.08 Withdrawal of registrations. (1) An                                               other way transact business in this state as an agent.
application for withdrawal from the status of a registered broker−                                    (4) (a) A broker−dealer that is registered in good standing in
dealer under s. 551.409, Stats., shall be filed by the registrant on                              Canada and that does not have a place of business in this state is
Form BDW with the central registration depository. If the regis-                                  exempt from registration if it complies with all of the require-
trant has any open customer accounts in this state, the settlement                                ments of s. 551.401 (4) (a), Stats., and discloses to each customer
of those accounts is a condition of its withdrawal. Additional                                    in this state that the broker−dealer and its agents are not registered
information may be required by the division and withdrawal is not                                 under ch. 551, Stats.
effective until electronically noticed through the central registra-                                  (b) An agent of a broker−dealer located in Canada that is
tion depository.                                                                                  exempt from registration on the basis of compliance with s.
   (2) An application for withdrawal from the status of a regis-                                  551.401 (4) (a), Stats., is exempt from the registration requirement
tered agent shall be filed by the broker−dealer or issuer which the                               in s. 551.402, Stats.
agent represents within 30 days of the termination of the agent’s                                    History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (1) (b), (2) and
employment on Form U−5 prescribed in s. DFI−Sec 9.01 (1),                                         (3), Register, December, 1980, No. 300, eff. 1−1−81; emerg. am. (1) (intro.), renum.
                                                                                                  (1) (a) and (b) to be (1) (c) and (d), cr. (1) (a) and (b) and (4), eff. 4−15−83; renum.
together with any additional information required by the division.                                (1) (a) and (b) to be (1) (c) and (d), cr. (1) (a) and (b) and (4), Register, August, 1983,
   History: Cr. Register, December, 1977, No. 264, eff. 1−1−78; am. (1) and (2),                  No. 332, eff. 9−1−83; am. (4) (a), Register, December, 1984, No. 348, eff. 1−1−85;
Register, December, 1979, No. 288, eff. 1−1−80; am. (2), Register, December, 1982,                am. (1) (d), (2), Register, December, 1996, No. 492, eff. 1−1−97; CR 02−041: renum.
No. 324, eff. 1−1−83; am. (2), Register, December, 1984, No. 348, eff. 1−1−85; am.                (1) to (4) to be (1) (a) to (d), cr. (2) Register August 2002 No. 560, eff. 9−1−02; correc-
(1), Register, December, 1994, No. 468, eff. 1−1−95; correction in (1) made under                 tion in (1) (a) 1. made under s. 13.93 (2m) (b) 7., Stats., Register August 2002 No.
s. 13.93 (2m) (b) 7., Stats., Register, August, 1999, No. 524; CR 08−077: am. Register            560; CR 02−102: am. (1) (d) 1., Register, December 2002 No. 564, eff. 1−1−03; CR
December 2008 No. 636, eff. 1−1−09.                                                               08−077: r. and recr. Register December 2008 No. 636, eff. 1−1−09.




                                                                                                                                                   Register, September, 2010, No. 657

				
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